> For the complete documentation index, see [llms.txt](https://newbitcoin.gitbook.io/newbitcoin/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://newbitcoin.gitbook.io/newbitcoin/newusd-white-paper/price-stability-mechanism.md).

# Price Stability Mechanism

To maintain its 1:1 peg to USDT, the following measures are enforced:

* Liquidity Locking: 45% of the supply is permanently locked in liquidity pools paired with USDT.\ <br>
* Oracle-Based Price Feeds: Smart contracts use real-time price oracles (e.g., Chainlink) to monitor and enforce peg conditions.\ <br>
* Controlled Emission: NEWUSD cannot be minted arbitrarily. Only pre-defined locked allocations are used in mining and ecosystem functions.\ <br>